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Turkish Lira: Tight CBRT funding offers marginal support – Commerzbank
According to Commerzbank’s Tatha Ghose, the Central Bank of the Republic of Türkiye (CBRT) kept its one-week repo rate at 37.0% and maintained the corridor at 35.5%-40.0%. With the repo window still closed, effective funding remains near 40%, which Ghose views as Lira-supportive.
Euro holds steady vs British Pound after stronger Eurozone, UK data
EUR/GBP trades around 0.8550 at the time of writing on Friday, remaining broadly stable despite a series of stronger-than-expected economic releases from the Eurozone and the United Kingdom (UK).
Japanese Yen remains pinned near 40-year low as Fed-BoJ rate gap keeps carry trade active
The USD/JPY pair edges lower on Friday as bulls turn cautious in anticipation of a potential government intervention to prop up the Japanese Yen (JPY).
Euro: Rate support seen fading gradually against US Dollar – MUFG
MUFG’s Derek Halpenny says the ECB’s latest communication supports a likely September rate hike, now almost fully priced, but warns that Euro support may fade as energy costs rise.
UK S&P Global Services PMI returns to growth in July, arrives at 51.8
According to preliminary data, the United Kingdom (UK) S&P Global Services Purchasing Managers’ Index (PMI) arrives above 50.0 in July, a figure that separates expansion from contraction, after declining in June.
South African Rand: SARB surprise weighs against US Dollar – Commerzbank
Commerzbank’s Volkmar Baur says the South African Reserve Bank’s (SARB) decision to keep its policy rate unchanged at 7% came as a negative surprise, particularly after June inflation rose and Brent crude moved above USD 100 per barrel.
Euro remains capped below 1.1400 despite bright Eurozone preliminary PMIs
The Euro (EUR) ticks up against the US Dollar (USD) on Friday but remains capped below 1.1400, and dangerously close to the year-to-date low, at 1.1324.
Eurozone flash Manufacturing PMI rises surprisingly faster-than-estimates to 52.0
Preliminary HCOB Manufacturing Purchasing Managers’ Index (PMI) in the oldest continent expands at a faster pace to 52.0 in July from June’s figure of 51.4. The manufacturing activity was anticipated to expand but at a moderate pace to 51.3.
Germany’s flash Manufacturing PMI unexpectedly rises strongly to 52.2 vs. 50.1 estimates
German flash HCOB Composite PMI returns to the expansion trajectory in July after declining in June. Preliminary figures show that the overall business activity expanded to 51.2. The Composite PMI was seen arriving at 49.8 from 49.5 in June.
Forex Today: New wave of US tariffs, deepening Middle East conflict keep markets on edge
Here is what you need to know on Friday, July 24:
Russian Ruble: CBR seen holding rate despite pressure to cut – Commerzbank
Commerzbank’s Tatha Ghose expects Russia’s central bank to keep its key rate at 14.25%, despite political and economic pressure for a cut. Surging inflation expectations, higher Oil and commodity prices, and accelerating Consumer Price Index (CPI) argue against easing.
British Pound steadies against Japanese Yen following outperformance in UK Retail Sales
GBP/JPY remains calm after six days of losses, trading around 218.20 during the early European hours on Friday. The currency cross holds its ground as the British Pound (GBP) receives support from the release of stronger-than-expected UK Retail Sales data.
ECB's Kocher: Don't see evidence of second-round effects
European Central Bank (ECB) Governing Council member Martin Kocher said on Friday that he doesn’t see any hard evidence of second-round effects, but the central bank will act if the inflation outlook deteriorates.Â